Reading the entire file in or memory mapping it will be faster, but may cause issues if you want your language to be able to #include
other files as these would be memory mapped or read into memory as well.
The stdio functions would work well because they usually try to buffer up data for you, but they are also general purpose so they also try to look out for usage patterns which differ from reading a file from start to finish, but that shouldn't be too much overhead.
A good balance is to have a large circular buffer (x * 2 * 4096 is a good size) which you load with file data and then have your tokenizer read from. Whenever a block's worth of data has been passed to your tokenizer (and you know that it is not going to be pushed back) you can refill that block with new data from the file and update some buffer location info.
Another thing to consider is if there is any chance that the tokenizer would ever need to be able to be used to read from a pipe or from a person typing directly in some text. In these cases your reads may return less data than you asked for without it being at the end of the file, and the buffering method I mentioned above gets more complicated. The stdio buffering is good for this as it can easily be switched to/from line or block buffering (or no buffering).
Using gnu fast lex (flex, but not the Adobe Flash thing) or similar can greatly ease the trouble with all of this. You should look into using it to generate the C code for your tokenizer (lexical analysis).
Whatever you do you should try to make it so that your code can easily be changed to use a different form of next character peek and consume functions so that if you change your mind you won't have to start over.